SINGAPORE: New York December cocoa is expected to retest a support at $2,280 per tonne, a break below which could open the way towards $2,246-$2,267 range.
The contract is riding on a wave (c), which has travelled below its 100% projection level of $2,294.
Chances are it may extend into $2,224-$2,251 range.
The weak bounce triggered by the support of $2,280 on Tuesday looks negligible. After this small incident, bears could be more confident in breaking the support and falling towards $2,267.
NY cocoa may fall into $2,280-$2,294 range
A break above $2,294 may lead to a gain into $2,309-$2,321 range.